Government Liability to Subcontractor

A subcontractor requested review of a settlement which disallowed its claim for payment of excess costs incurred in the performance of work as a subcontractor under a Federal contract. The Government was not liable to the subcontractor for unanticipated increased costs since the Government was not the prime contractor. GAO has no jurisdiction to resolve issues between a prime contractor and its subcontracts. Reporting the claim to Congress for relief under the Meritorious Claims Act would not be justified since the claim contained no elements of unusual legal liability or equity.